Consultation paper on crypto assets drawn up

18 Jan 2019

A consultation paper on crypto assets has been released.

In a statement, national treasury indicated that the consultation paper is the product of a collaborative effort involving the Financial Intelligence Centre, Financial Sector Conduct Authority, South African Revenue Service, South African Reserve Bank and itself.

Reference is made to the Intergovernmental Fintech Working Group, set up to “develop a common understanding among regulators and policymakers of fintech developments, as well as policy and regulatory implications for the financial sector and economy”.

A joint working group was established in 2018 tasked with reviewing the position on crypto assets.

The consultation paper flows from that work.

Some of the issues covered in the paper include classifying crypto assets, use case analysis, payments using crypto assets, risks posed by crypto assets, challenges in regulating crypto assets, objectives for regulating crypto assets and proposals for regulatory actions for crypto assets.

It is proposed that regulatory action should not be delayed “until the most appropriate regulatory approach has become clear” but to rather act and amend as innovation evolves.

Comment is invited by 15 February 2018.

See also:

• Is Bitcoin legal in South Africa?
• Everything you need to know about South African crypto regulation
• Cryptocurrencies and tax

(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)